IRS Provides Relief for Those Affected by California Weather
In response to the severe flooding that has affected many California residents beginning January 8, 2023, the IRS has announced an extension for tax filings and payments for those affected by the disaster.
The disaster area covers the counties of Colusa, El Dorado, Glenn, Humboldt, Los Angeles, Marin, Mariposa, Mendocino, Merced, Monterey, Napa, Orange, Placer, Riverside, Sacramento, San Bernardino, San Diego, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, Sutter, Tehama, Ventura, Yolo, and Yuba.
Affected taxpayers in the designated disaster areas have until May 15, 2023, to file various tax returns and pay any taxes due. This includes individual returns typically due on April 18, 2023 and business returns normally due on March 15, 2023 and April 18, 2023. Quarterly estimated tax payments that historically would be due on January 17, 2023 and April 18, 2023 have also been granted extension to May 15, 2023.
In addition to the extension for tax filings, eligible taxpayers will have the extended window to make 2022 contributions into their IRA’s and HSA’s.
The Disaster Relief also gives 1031 investors with deadlines falling between January 8, 2023 and May 15, 2023 an extension until May 15, 2023. For additional information on how the 1031 relief works, you can refer to our previous blog post, “Disaster Relief Also Available for Section 1031 Exchanges.”
Stay tuned for updates on whether the state of California will also be granting similar relief to affected taxpayers.
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